Regular 4.F.
Regular City Council Meeting
- Meeting Date:
- 09/14/2009
- TITLE
- Public Hearing SID 1386
- PRESENTED BY:
- Patrick M. Weber, Financial Services Manager
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
The assessment for SID 1386 (East & West MacDonald Drive) has been completed by the Finance Division and is ready to spread on the tax rolls. This project is for street and storm improvements. This project and bond sale have previously been approved by council.
ALTERNATIVES ANALYZED
The Council may:
- Approve the resolution; or
- Not approve the resolution, the tax payers will not be assessed, and the General Fund will be responsible for paying for the improvements.
FINANCIAL IMPACT
The costs associated with SID 1386 are assessed per lot. The net effective interest rate is 5.28%. Under the State statute 7-12-4189, the City is required to add ½ of 1% for a total rate of 5.78%. The ½ of 1% will be used as additional security on bond issues, as stated in the final bond resolution. Interest earnings and prior collections are subtracted from the final construction cost and spread to the appropriate properties. Any remaining fund balances are used to call bonds.
RECOMMENDATION
Staff recommends that a public hearing be held and Council passes the proposed resolution on September 14, 2009.